NZ First's election policy to automatically register every New Zealand-born baby with a KiwiSaver account and a $1000 kickstart from the Government is receiving mixed reviews.

NZ First leader Winston Peters announced the policy at his party's Election Campaign Launch in Auckland at the weekend saying as thousands of young Kiwis use KiwiSaver to save for first homes it's common-sense the fund helps pay for tertiary education too.

Katikati mother-of-four Shelle Jensen says she thinks NZ First's Kiwisaver election policy is good thing for her children, including baby Alyvia.

Winston says the KiwiSaver account will only be accessible for tertiary education fees, first home purchases and retirement.

'Over their childhood and teenage years with contributions from family, the Christmas and birthday ‘$20 gifts' from the grandparents, and the after-school and holiday jobs, most people will see a sizable amount of savings after 18 years.”

Winston says the policy will change NZ's parental savings culture and teach children good savings habits from early on.

'The savings for the government will be substantial, not having to loan as much money to students for their tertiary education fees.

'Some will say this won't have an affect for many years. They're wrong, of course, because we're setting out to change New Zealand to a savings culture.”

Katikati mother-of-four Shelle Jensen says she would opt for the policy for her four children aged eight, four, 18 months and 10 months.

'Obviously I know how hard it is now to get into the property market, with the way the deposits are for first-home buying and how expensive it is.

'I also have a student loan worth $35,000 – so if something like Kiwisaver accumulates over years to come, I think that's going to be really beneficial for my kids.”

Shelle says the policy sounds good because it's unknown what will be available to tertiary students in future.

'Something like this would definitely help that situation, because you don't know what will be happening in 18-20 years' time when my kids may go to university.”

'And if I'd had that option [of using Kiwisaver funds for tertiary study] when I was younger then that would definitely help with my student loan now.

Tauranga Budgeting Advisory Service manager Diane Bruin says while Kiwis are 'bad savers” she questions starting children with Kiwisaver too young.

'Who is actually going to pay for it up until they start to earn money? Kiwis, in general, are not good savers but what is the best way of making the policy flexible?

'Maybe he [Winston] has a point with education, so going into tertiary education instead of having all this debt maybe this is any way of dealing with it.”

But Diane says while any measure encouraging people to save is helpful it can't be too restrictive either.

'So I think it needs to be well thought-out and well-managed among all political groups.

'For example, for a standard family, when the baby is born and gets a $1000 Kiwisaver grant, if the family then has to start putting money into it – well that's not affordable for many of our families.”

Bay Financial Partners investment advisor Johnathan York says the proposal isn't going to have much benefit – even when the young person enters tertiary education – unless payments are made to the fund regularly.

'In principle it sounds a good idea but if you've got someone who is just being a devil's advocate – who just the $1000 and doesn't contribute anything – then they're not going to have a whole lot to go towards their tertiary education are they?

'If you have got $1000 and you've got a four or 4.5 per cent net return and you don't contribute anything to it, it's only going to be $2000-$2500 at the end of it.”

Putting additional funds into the Kiwisaver account depends on a family's financial circumstances, says Jonathon.

'I suppose as the child gets older they can contribute to it by way of a part-time job or something, but if you're in a situation where your family can't afford to contribute anything to it, while policy is good to have it doesn't really serve any purpose.”